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Is Evaxion Biotech A/S (EVAX) A Good Stock To Buy?

The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded Evaxion Biotech A/S (NASDAQ:EVAX) based on those filings.

Is EVAX a good stock to buy? The smart money was becoming more confident. The number of bullish hedge fund positions increased by 3 in recent months. Evaxion Biotech A/S (NASDAQ:EVAX) was in 3 hedge funds' portfolios at the end of the first quarter of 2021. Our calculations also showed that EVAX isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).

Today there are a large number of metrics stock market investors use to appraise stocks. Two of the less utilized metrics are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the top picks of the top investment managers can outperform the market by a significant amount (see the details here). Also, our monthly newsletter's portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Jonathan Barrett Luminus Management
Jonathan Barrett Luminus Management

Jonathan Barrett of Luminus Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $28 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we're going to go over the key hedge fund action surrounding Evaxion Biotech A/S (NASDAQ:EVAX).

Do Hedge Funds Think EVAX Is A Good Stock To Buy Now?

At the end of March, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 3 from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards EVAX over the last 23 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Granite Point Capital held the most valuable stake in Evaxion Biotech A/S (NASDAQ:EVAX), which was worth $1.3 million at the end of the fourth quarter. On the second spot was Luminus Management which amassed $1.2 million worth of shares. Alyeska Investment Group was also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Luminus Management allocated the biggest weight to Evaxion Biotech A/S (NASDAQ:EVAX), around 0.22% of its 13F portfolio. Granite Point Capital is also relatively very bullish on the stock, setting aside 0.05 percent of its 13F equity portfolio to EVAX.

As one would reasonably expect, some big names have been driving this bullishness. Granite Point Capital, managed by Warren Lammert, established the largest position in Evaxion Biotech A/S (NASDAQ:EVAX). Granite Point Capital had $1.3 million invested in the company at the end of the quarter. Jonathan Barrett and Paul Segal's Luminus Management also initiated a $1.2 million position during the quarter. The only other fund with a brand new EVAX position is Anand Parekh's Alyeska Investment Group.

Let's also examine hedge fund activity in other stocks similar to Evaxion Biotech A/S (NASDAQ:EVAX). These stocks are iSun, Inc. (NASDAQ:ISUN), China Customer Relations Centers, Inc. (NASDAQ:CCRC), ProPhase Labs Inc (NASDAQ:PRPH), American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT), Avino Silver & Gold Mines Ltd. (NYSE:ASM), ReWalk Robotics Ltd. (NASDAQ:RWLK), and Phunware, Inc. (NASDAQ:PHUN). All of these stocks' market caps are closest to EVAX's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ISUN,1,140,1 CCRC,2,1295,0 PRPH,4,3164,3 AVCT,3,1243,-2 ASM,1,281,0 RWLK,4,8031,0 PHUN,1,42,0 Average,2.3,2028,0.3 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 2.3 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $3 million in EVAX's case. ProPhase Labs Inc (NASDAQ:PRPH) is the most popular stock in this table. On the other hand iSun, Inc. (NASDAQ:ISUN) is the least popular one with only 1 bullish hedge fund positions. Evaxion Biotech A/S (NASDAQ:EVAX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EVAX is 61.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 17.2% in 2021 through June 11th and still beat the market by 3.3 percentage points. Hedge funds were also right about betting on EVAX as the stock returned 17.1% since the end of Q1 (through 6/11) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.

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